Is Substack’s Latest Community-Building Attempt Too Late to the Party?

Is Substack’s Latest Community-Building Attempt Too Late to the Party?

In the world of content creation, the ability to keep a mailing list and directly connect with subscribers is the ultimate goal. However, Substack's recent attempts at community-building may not be enough to win the race. While these features may buy them some extra time, they still need to plan their next steps strategically.

One crucial aspect that Substack needs to address is discoverability. Content creators need a platform that allows them to find and be found by their target audience. Currently, Substack's homepage lacks personalization and fails to showcase content that truly resonates with individual users. To truly feel the love from the platform, users need that "how did they know I'd like this?!" moment.

So, what can we expect from Substack in the coming year? Here are some predictions:

1. A Shift Towards Personal Profiles: Instead of just seeing newsletters, users will have the option to follow actual people. Adding personal profiles to Substack accounts will create a more intimate and engaging experience for both creators and subscribers.

2. Improved Discoverability: If Substack wants its authors to thrive, it must provide readers with better ways to find them. This could involve integrating with other social platforms, allowing cross-posting, or even providing a single communication channel that aggregates data from all social platforms. The goal is to make it easier for creators to reach their audiences wherever they may be.

3. Reputation Building: Substack should consider offering benefits to authors such as custom highlights in their own newsletters and better homepage positioning. Other platforms, like Revue, are already making headway in this area, and Substack needs to keep up to remain competitive. Reputation-building features could be the key to attracting and retaining top-tier creators.

Incorporating the DHM (Delight, Hard-to-copy, Margin-enhance) model can also help Substack gain a competitive edge. By focusing on delighting customers and creating hard-to-copy advantages, Substack can enhance its margins and solidify its position in the market. Here's how:

1. Delighting Customers: Substack needs to identify how its platform currently delights customers and find ways to continue doing so in the future. Personalization technology, like Netflix's recommendation algorithm, is a prime example of how a company can delight customers by offering tailored experiences.

2. Hard-to-Copy Advantages: Substack should strive to create advantages that are difficult for competitors to replicate. This could involve building a strong brand, leveraging network effects, capitalizing on economies of scale, counter-positioning against competitors, developing unique technology, or creating switching costs for customers.

3. Margin Enhancement: Substack should experiment with different pricing and business models to enhance its margins. This could involve offering premium features for a higher price or exploring new revenue streams beyond subscriptions.

In conclusion, while Substack's latest community-building attempts may not be groundbreaking, they can buy the platform some time to strategize its next steps. By focusing on discoverability, integrating with other platforms, and building a strong reputation, Substack can position itself as the go-to platform for content creators. Additionally, adopting the DHM model can help Substack create a delightful user experience and establish hard-to-copy advantages that enhance its margins. The race is still on, and only time will tell who will be leading the pack in 2022.